Transalta Corp

TA-T

TSE:TA

8.57
0.01 (0.12%)
TransAlta Corporation is an electricity power generator and wholesale marketing company headquartered in Calgary, Alberta. It is a privately owned corporation and its shares are traded publicly.
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Analysis and Opinions about TA-T

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
November 24, 2017

(A Top Pick Sept 15/16. Up 28%.) *Long* (Pairs trade with a Short on TRP-T.) He still has both positions on.

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Transalta Corp (TA-T)
November 24, 2017

(A Top Pick Sept 15/16. Up 28%.) *Long* (Pairs trade with a Short on TRP-T.) He still has both positions on.

DON'T BUY
DON'T BUY
November 2, 2017

It has had a nice recovery based on the bottom but not when you look at the high of a couple of years ago. They have the renewable side and it used to be worth more than TA-T corp. That imbalance got fixed. They got into trouble on the balance sheet. He would prefer something more stable.

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Transalta Corp (TA-T)
November 2, 2017

It has had a nice recovery based on the bottom but not when you look at the high of a couple of years ago. They have the renewable side and it used to be worth more than TA-T corp. That imbalance got fixed. They got into trouble on the balance sheet. He would prefer something more stable.

HOLD
HOLD
August 3, 2017

Alberta shut down its coal fired electrical generation plants. Contracts were ended. Australia has some issues for them too. They have cut their costs down and re-focused. There used to be funding issues. They are fine now, but not the best in their sector. He leans more to interpipes. There is clearly not a dividend cut coming. They are not overlevered.

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Transalta Corp (TA-T)
August 3, 2017

Alberta shut down its coal fired electrical generation plants. Contracts were ended. Australia has some issues for them too. They have cut their costs down and re-focused. There used to be funding issues. They are fine now, but not the best in their sector. He leans more to interpipes. There is clearly not a dividend cut coming. They are not overlevered.

COMMENT
COMMENT
June 27, 2017

You buy this because of its assets and the ability of those assets to generate cash flow. Feels the Alberta electric generation market is still subject to a lot of question marks. He would rather own wind power in Europe.

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Transalta Corp (TA-T)
June 27, 2017

You buy this because of its assets and the ability of those assets to generate cash flow. Feels the Alberta electric generation market is still subject to a lot of question marks. He would rather own wind power in Europe.

COMMENT
COMMENT
June 1, 2017

This has struggled over the last couple of years as it got hurt by the environmental movement and the NDP government in Alberta wanting to shut down all coal producing energy assets. They are migrating from coal to natural gas and have 2 plants, Sundance 1 and Sundance 2 that are coal fired, which are going to close by the end of this year. That hurts their bottom line. Also, for the last number of years, they have been over levered. Their bond rating has always hovered below investment grade or just barely above it. Thinks it will be in the penalty box for another 6 months to 1 year because they don’t have the greatest of assets.

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This has struggled over the last couple of years as it got hurt by the environmental movement and the NDP government in Alberta wanting to shut down all coal producing energy assets. They are migrating from coal to natural gas and have 2 plants, Sundance 1 and Sundance 2 that are coal fired, which are going to close by the end of this year. That hurts their bottom line. Also, for the last number of years, they have been over levered. Their bond rating has always hovered below investment grade or just barely above it. Thinks it will be in the penalty box for another 6 months to 1 year because they don’t have the greatest of assets.

COMMENT
COMMENT
May 9, 2017

This, by default, is a contrarian company that happens to be in the utility space. This is coming back. They’ve had to do some major cost cutting. They’re converting some of their coal plants to natural gas in order to avoid some carbon tax. The beauty of utilities is that they do generate cash flow. The question becomes, how sustainable is that cash flow. Feels you can do better elsewhere.

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This, by default, is a contrarian company that happens to be in the utility space. This is coming back. They’ve had to do some major cost cutting. They’re converting some of their coal plants to natural gas in order to avoid some carbon tax. The beauty of utilities is that they do generate cash flow. The question becomes, how sustainable is that cash flow. Feels you can do better elsewhere.

HOLD
HOLD
April 3, 2017

He likes the sector. He thinks it looks okay. It broke out and came back to do a test. There is some upside.

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Transalta Corp (TA-T)
April 3, 2017

He likes the sector. He thinks it looks okay. It broke out and came back to do a test. There is some upside.

PAST TOP PICK
PAST TOP PICK
March 30, 2017

(Top Pick Apr 6/16, Up 35%) Cheap valuation. They have an agreement with the Alberta government on their coal. Brookfield has been buying up similar assets.

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Transalta Corp (TA-T)
March 30, 2017

(Top Pick Apr 6/16, Up 35%) Cheap valuation. They have an agreement with the Alberta government on their coal. Brookfield has been buying up similar assets.

DON'T BUY
DON'T BUY
February 24, 2017

A utility type stock, and is fully priced at this level. It has had an excellent run this year. He questions if the yield is sustainable on a longer-term basis.

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Transalta Corp (TA-T)
February 24, 2017

A utility type stock, and is fully priced at this level. It has had an excellent run this year. He questions if the yield is sustainable on a longer-term basis.

DON'T BUY
DON'T BUY
February 14, 2017

Cut their dividend pretty significantly about 1.5 years ago, and there isn’t really a lot of catalysts in the stock. A coal fired power production largely with some CPA’s that are rolling off over time, and then they will ultimately need to replace their fleet with natural gas, renewables or some combination of the 2. With a yield at 2.1%, and without a lot of growth, there are better options elsewhere.

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Transalta Corp (TA-T)
February 14, 2017

Cut their dividend pretty significantly about 1.5 years ago, and there isn’t really a lot of catalysts in the stock. A coal fired power production largely with some CPA’s that are rolling off over time, and then they will ultimately need to replace their fleet with natural gas, renewables or some combination of the 2. With a yield at 2.1%, and without a lot of growth, there are better options elsewhere.

DON'T BUY
DON'T BUY
February 10, 2017

A utility company that he would not own. You own utility companies for slow, steady growth, steady rising dividends so that you can sleep at nights. This has not been that kind of company. Its operations have been troubled. Management has done some questionable things.

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Transalta Corp (TA-T)
February 10, 2017

A utility company that he would not own. You own utility companies for slow, steady growth, steady rising dividends so that you can sleep at nights. This has not been that kind of company. Its operations have been troubled. Management has done some questionable things.

HOLD
HOLD
January 20, 2017

Their legacy business was coal which experienced some difficulty, and was on the way to being shut down in Alberta. The issue was, how much will they get for these legacy assets. Also, they wisely decided to set up a renewable subsidiary where they still own a good chunk of it. This has grown quite nicely. Thinks the CEO is doing a decent job.

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Transalta Corp (TA-T)
January 20, 2017

Their legacy business was coal which experienced some difficulty, and was on the way to being shut down in Alberta. The issue was, how much will they get for these legacy assets. Also, they wisely decided to set up a renewable subsidiary where they still own a good chunk of it. This has grown quite nicely. Thinks the CEO is doing a decent job.

COMMENT
COMMENT
December 9, 2016

Reached an agreement with Alberta for transition payments of about $97 million a year from 2017 to 2030. That news was better than expected and he upgraded it to a $7.50 target. It is a little higher than that, but still pretty cheap on a free cash yield. Trading at 15.3 versus its peers at lower levels. Its payout ratio on a free cash flow is 14%. He would prefer one with a bigger yield and one with the drop downs, Transalta Renewables (RNW-T).

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Transalta Corp (TA-T)
December 9, 2016

Reached an agreement with Alberta for transition payments of about $97 million a year from 2017 to 2030. That news was better than expected and he upgraded it to a $7.50 target. It is a little higher than that, but still pretty cheap on a free cash yield. Trading at 15.3 versus its peers at lower levels. Its payout ratio on a free cash flow is 14%. He would prefer one with a bigger yield and one with the drop downs, Transalta Renewables (RNW-T).

COMMENT
COMMENT
November 30, 2016

Preferreds. The settlement of the energy issue last week has been very favourable. This company is in good shape, because a lot of their existing coal capacity can also convert into natural gas, so as they meet the capacity markets in Alberta that have been created, that is a plus for them. As to preferreds, people own them for 1) income and 2) for the higher position on the balance sheet. It has a 7% yield, but in 2017, that will reset to 3.1% above whatever the 5-year yield is at the time. The rate-reset game that has been going on in the Canadian preferred market since 2008, has been very painful.

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Transalta Corp (TA-T)
November 30, 2016

Preferreds. The settlement of the energy issue last week has been very favourable. This company is in good shape, because a lot of their existing coal capacity can also convert into natural gas, so as they meet the capacity markets in Alberta that have been created, that is a plus for them. As to preferreds, people own them for 1) income and 2) for the higher position on the balance sheet. It has a 7% yield, but in 2017, that will reset to 3.1% above whatever the 5-year yield is at the time. The rate-reset game that has been going on in the Canadian preferred market since 2008, has been very painful.

DON'T BUY
DON'T BUY
November 28, 2016

(Market Call Minute.) Has had a good run lately, but given that it is a utility you don’t want to be here.

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Transalta Corp (TA-T)
November 28, 2016

(Market Call Minute.) Has had a good run lately, but given that it is a utility you don’t want to be here.

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